The Jamkhani coal block
is Vedanta's second captive one after Chotia in Jharkhand that has a rated capacity of one million tonne per annum (mtpa). The Chotia block is operating at almost its full rated capacity. The company aims to commence mining from this Jamkhani block within a year of getting the requisite letter from the state authorities. Initially, Vedanta aims to extract 2.6 million tonnes per annum from the block.
Coal materialisation for Vedanta has improved after the monsoons. The Chotia mine recorded output of 278,000 tonnes in the December quarter of this fiscal.
“In terms of alumina availability, the recent Supreme Court order allows us to bid for Nalco (National Aluminium
Company) alumina and this has the potential to increase our domestic sourcing of bauxite”, he added.
In the aluminium sector, Vedanta made significant improvement, pruning its aluminium CoP to $1691 per tonne down nine per cent quarter-on-quarter and lower by 18 per cent year-on-year (y-o-y). Improvement in coal performance and ramp up in alumina output at the company’s Lanjigarh refinery in Odisha contributed to the falling cost in aluminium making. Alumina production hike was supported by higher local bauxite sourcing. Vedanta sources bauxite from state owned Odisha Mining Corporation’s (OMC) Kodingamali mines under a long-term pact signed by the two entities. Locally sourced bauxite feeds 50 per cent of the refinery’s requirement.
“Noteworthy, our aluminum business continues to benefit from improved integration and our interventions currently witnessing costs comfortably below $1,600 a tonne in January. And if you recall, that is a reduction of around $600 a tonne within just over a year”, Venkatakrishnan said at the conference call.